The fair market value (FMV) of a product is the price it would sell for on the open market if both the buyer and seller are reasonably knowledgeable about the asset, acting in their own best interests, are not under undue pressure, and are given a reasonable time period to complete the transaction.
What Is a House’s Fair Market Value?
The fair market value (FMV) of a home is an estimate of what it would sell for on the open market. FMV is an estimate, not the property’s actual value.
A willing buyer and seller who are both reasonably knowledgeable about the property agree on the FMV. A house’s fair market value is determined by several factors, including current housing market trends, appraisal value, and an analysis of comparable homes in the area.
The fair market value of a home is easily calculated by multiplying the price per square foot by the square footage of the home.
How to Determine the Fair Market Value of a House?
Many factors influence fair market value, but no specific formula exists. Each valuation is based on two primary sources: real estate appraisals and historical sales data.
- Take the Help of a Home Appraisal
- Study the Market Dynamics
- Check on Real Estate Websites
- Check Tax Records
- Calculate The Price From Square Footage
Housing Market 2023 Updates
Check out your state’s median home sale price to better predict the FMV.